Post by
Picker41 on Jun 16, 2016 12:43pm
Confusion
I haven't posted for a while, but wow, I had to comment on the confusion that seems rampant on this bullboard.
Make no mistake: this deal with Sinoenergy is good for shareholders (if it closes - that is really the only point up for debate and the market is indicating it is practically a coin flip). The company was shopped publicly for an extremely long time - this is the best deal that could be had after everybody looked at them (and after the first failed deal). The share price decline is a function of high leverage in a down market. Getting some equity here is a good thing, even if it is at a steep discount to prices from a couple years ago (ancient history). To think there was some short selling conspiracy that depressed the price is craziness.
I saw TBE and LTS were mentioned as doing a good job for shareholders. ROFLMAO, you do realize that both companies are effectively bankrupt and they wish they could announce a deal that would salvage some equity value for shareholders. Mark my words - those companies will be bankrupt (i.e. zero for equityholders) or seriously restructured (maybe a penny for equityholders just to get a deal done that involves a debt to equity swap) before year end.
Oh, and the comment disparaging this deal because Penn West is selling their Viking production for a higher $/boe/d price is laughable... that's like saying my neighbour sold his 2015 Mercedes for $40k, I must be able to get the same for my 1982 Hyundai Pony.
Comment by
yetta on Jun 16, 2016 12:49pm
You have a 1982 Hyundai Pony??? Just kidding. I liked your post!